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New credit card surcharge to take effect

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  • Description

    Personal finance expert explains impact

  • Duration 3:09
  • Date

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-- you -- why they charge starting Sunday stores will be allowed to view.

With a new check out fee if you pay by credit card the surcharge could add an extra 4% pure purchase price.

Dave Ramsey says -- the card anyway go for the -- state.

This is no -- every credit to every time he -- they can nail you for 4%.

Yeah I and then me the merchant -- are now going to be passed on directly to the consumer not even in the cost for the product anymore.

And this comes as a settlement from a huge lawsuit that's been going on for many years now.

To where -- so I used to be able to say you can't charge a different price if you take these so than if you take cash and now they can.

They -- have to post signs in the -- they're going to do this so.

You can at least know that you're being charged more for using your credit card I ask you Dave he said Sunday -- and -- and they weren't allowed to charge -- Price for the product tire for using predator but don't don't they -- -- gas stations.

Well they've been doing it and this lawsuit has been that's one of the things have brought it up and Wal-Mart and some of the other stores.

The big chains came out against and it was a real clash of the titans.

Between some of the big retail federation people and the the whole Visa Mastercard network and -- -- yeah they've been messing with this back and forth for years it's been a big argument because those of us that take cars like we don't take credit -- we take debit cards and they they hit me as a merchant.

For three or 4% -- some time somebody does that instead of giving us a check.

And so we just kind of had to build -- in as the cost of goods are a cost of doing business those of us itself things for the public.

But now of course -- that you're gonna get on top but -- folks I know you like to cut up.

Cards like if you use -- debit card you're actually -- for the sphere it.

If he is a debit card as a debit card.

Debit card has two functions if you put in your pin with a debit card it's working like an ATM card.

And -- you're not going to get charged on those that's not a part of this this lawsuit settlement.

But if you use your debit card like I use mine it's a visa debit card I just swipe I don't even know my -- And now it's going to -- be some network like a credit card transaction I'm gonna get that same charge.

I don't understand the difference I mean it's it's still you when you use -- debit card you're you're accessing the -- of your money right.

You are -- you're running it through the -- -- network if you don't use the pin system.

If you use the pen system you're running -- -- your ATM network you don't have the guarantees for fraud the other stuff.

But if you run if you just swipe it and you do and you select credit that should creditor debit -- you have to say credit that you don't put -- -- -- And if you do that -- it's running through the visa system so the base of charging them the same exact.

Merchant fee for that debit card transaction is there are credit card transaction was a very trivia -- on that we're talking billions of dollars at stake here right.

Billions and billions that's why this has been such a big fight.

But it is truly one of those things death by a thousand cuts because it's.

4% at a time by -- it doesn't feel like a lot but boy it -- I'm sure -- -- idiot Dave Ramsey thanks a lot he cut California credit reports thank you day.

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